Our objective is to buy a property outright (i.e. no mortgage) in France in 10 years time (my wife is a French national). The aim is to build a portfolio that will return at least 6% compound interest.
We intend to start our plan with a lump sum by withdrawing our funds from a Standard Life portfolio set up by our independent financial advisor (if only I knew then what I know now!!!), which is worth about 60,000 Euros.
We will also make regular monthly contributions
As we will be buying our property in France, we will therefore be converting our $HKD into Euros every time we buy.
I have decided on the following ETFs:
35% Ishares Euro Govt Bond (IBGS) (Amsterdam Euronext) Expense ratio 0.20%
35% iShares Core MSCI World UCITS ETF USD Acc
20% iShares MSCI Europe UCITS ETF (IMEU):
10% iShares Core MSCI Emerging Mkts (EMIM) (Amsterdam Euronext) Expense ratio 0.25%
My questions are:
- 1 Does anyone have any comments / advice concerning the above selection?
2 Does anyone have any advice regarding the absence of small caps from my proposed portfolio?
3 Does anyone have any input regarding the fact that we live / earn our money in Hong Kong (for the next 10 years) but intend to use the proceeds of our plan to buy a house / pay future bills in France when we retire?
4 Finally, although the idea of timing the market is the antithesis of Boglehead philosophy, does anyone have any advice about withdrawing my lump sum from Standard Life and investing it in the above portfolio. I have been scarred by my first foray into investing in 1999 when I bought a UK FTSE tracker at the height of the market and waited 10 years for it to return a profit… I am tempted to withdraw now and wait for the market to crash….